Varian 4Q Profit Jumps 32 Percent
Thursday October 25, 5:13 pm ET
Varian Fourth-Quarter Earnings Rise 32 Percent As Sales Rise Faster Than Costs
GLOUCESTER, Mass. (AP) -- Varian Semiconductor Equipment Associates Inc., which makes a technology used in semiconductor manufacturing, said Thursday fiscal fourth-quarter earnings jumped 32 percent as sales rose faster than operating costs.
Net income in the quarter ended Sept. 30 rose to $43.4 million, or 55 cents per share, from $32.9 million, or 39 cents per share, in the 2006 period. The company said profit was hampered by tax charges of $12 million, or 16 cents per share, caused by realignment plans. Without that, earnings were $55.4 million, or 79 cents per share.
Analysts, whose estimate typically exclude one-time items, expected profit of 69 cents per share, according to Thomson Financial.
Total operating expenses increased nearly 18 percent to $61.5 million.
Revenue rose 40 percent to $298.7 million from $213.1 million last year, surpassing Wall Street's estimate for $294 million.
For the year, net income surged to $142.2 million, or $1.73 per share, and revenue doubled to $1.1 billion.
Looking ahead, the company expects fiscal first-quarter revenue between $250 million and $260 million and earnings of 53 cents to 58 cents per share. That is lower than Wall Street estimates for profit of 66 cents per share on revenue of $282 million.
Varian Semiconductor shares dropped in aftermarket trading, losing $6.60, or 13.9 percent, at $41. They lost $3.92, or 7.6 percent, to close at $47.60 in the regular session. |
